Energy Training Week 2013 Course 3: Energy Efficiency Policy and Measures Introduction to Energy Efficiency Policies Grayson Heffner and Robert

Transcription

1 Energy Training Week 2013 Course 3: Energy Efficiency Policy and Measures Introduction to Energy Efficiency Policies Grayson Heffner and Robert Tromop

2 Topics The big picture what is energy efficiency and why is it important? What benefits can governments expect from implementing energy efficiency policies? Why do governments need to get involved? How do governments go about formulating efficiency policies? Discussion

3 What is Energy Efficiency? Energy efficiency is economic efficiency. It means delivering the same services light, transportation, pumping with the same or less energy. CFLs the energy efficiency icon. 80% energy savings plus 10 times the appliance life!

4 Why is energy efficiency important? Contributes to energy security in both energyimporting and energy-exporting countries The fifth fuel in any resource portfolio A central part of any climate change policy Provides additional non-energy benefits for the economy and society

5 Energy efficiency helps control demand growth, especially in non-oecd countries New Policies Scenario China, India, the Middle East and other non-oecd countries account for virtually all (over 90%) of the demand growth to 2035

6 Energy efficiency is an essential climate change policy

7 The value of energy efficiency is most evident when savings are needed in a hurry Source: IEA (2005) Saving Electricity in a Hurry, OECD/IEA, Paris

8 Energy efficiency also delivers social and economic benefits Health Energy poverty Local air pollution Employment impacts Asset values Property prices Productivity Economic Competitiveness Productivity Lower manufacturing costs Improved energy efficiency Consumer surplus Demand for services / goods Energy security Reduced demand growth Reduced energy imports Reduced investment requirements Shortfall mitigation Consumer & Producer Energy Savings CO 2 Emissions Abatement

9 Copyright 2012 Yahoo! Inc. All rights reserved. Non-energy benefits of transportation efficiency improvements

10 Why do governments develop policies to encourage energy efficiency? Consumers and asset owners often face barriers to implementing energy efficiency Governments can intervene to correct these barriers Types of barriers: Market Barriers Financial Barriers Information and awareness barriers Regulatory and Institutional Barriers Technical Barriers

11 % of respondents identifying the main driver for energy efficiency policy in their country What drives energy efficiency policy? IEA Survey Results Worldwide 57% 56% 50% 31% 24% 11% 10% 19% 26% 4% 43% 5% 19% 6% 18% 6% 1% 2% 3% 8% Energy security Economic development Climate change Economic competiveness Public health Other IEA EBRD LAC Non-IEA Asia, MENA and Africa

12 Common barriers Barrier Examples Market Market and price distortions that prevent customers from appraising the true value of energy efficiency. The principal agent or split incentives problem, in which the investor does not reap the rewards of improved efficiency Transaction costs (project development costs are high relative to potential energy savings). Financial Lack of understanding of EE investments, or aversion to perceived risk on the part of financial institutions. Information and awareness Lack of sufficient information to make rational consumption and investment decisions. Regulatory and institutional Energy tariffs discouraging EE investment Incentive structures that discourage investment in cost-effective energy efficiency. Institutional bias towards supply-side investments. Technical Lack of affordable or suitable EE technologies Insufficient local capacities for identifying, developing, implementing and maintaining EE investments.

13 Major barriers facing energy efficiency - IEA survey results 70% 65% 60% 50% 40% 46% 46% 46% 38% 30% 20% 27% 23% 23% 23% 19% 19% 10% 0% End-user awareness, low energy prices, financing, and implementation capacity are commonly cited

14 Questions to consider when formulating energy efficiency policies Will it work? How much will it cost? Who will pay? How long will it take? Will there be unintended impacts or interference with other policies? Does the capacity exist to implement?

15 Types of policies Information and education: Advice/aid in implementation; labelling; professional training and qualification Economic instruments: fiscal incentives; marketbased instruments; direct investment Regulatory instruments: codes & standards; auditing; monitoring; obligations schemes Research, Development &Deployment (RD&D) Voluntary approaches: public/private sector agreements; public voluntary schemes Policy support measures: strategic planning

16 Develop policies - choosing policies to overcome barriers Barrier Limited Information Perceived Risk Customer Awareness Price or market distortion Technology Availability Transaction Costs Access to financing Policy Pilot Programs Awareness Campaigns Market transformation Public Sector Procurement Fiscal policies School curricula Minimum Efficiency Efficiency Stds Industry formation Utility Programs Audit requirements Audit grants Revolving funds

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18 Provides free, up-to-date data on national policy packages and latest policy developments in renewable energy, EE and climate change worldwide. Advanced user-driven search Analytical tables showing key policy trends Expanding geographical scope to IEA non-member countries In collaboration with Clean Energy Solutions Centre, UNEP Risoe Centre and European Commission

19 Discussion What are the energy efficiency policy drivers in your country? What are the biggest barriers to saving energy? What type of energy efficiency policies are most popular in Central America? What non-energy benefits might help mobilize support for energy efficiency policies?